Applying Sales Tax or VAT to Discount Items
Discounts can be set as fixed amounts or percentages for items. Discounts can also be specified across a group of items or for a single line item. How and when a discount is applied depends on the method in which it is applied, and on the NetSuite edition being used when applying the discount. Consequently, the tax that is calculated on your items can vary. It is important to understand the different discount methods available for your NetSuite edition.
To help you choose the correct method, read the following topics:
On a discount item in a OneWorld account with a U.S. base subsidiary, NetSuite always applies VAT after applying the discount for transactions in non-U.S. nexuses, even if you disable the Apply Before Sales Tax preference on the discount item record. Note that the UK edition and other non-OneWorld editions (except US) do not have the Apply Before Sales Tax box because countries that use VAT/GST always apply the discount before tax. For Brazil, China, and India, see Applying VAT Before or After Discounts.